Skip to main content

The World This Week – 24th July 2020 to 31st July 2020

 Indian Equity Summary-  

·        SØ&P BSE Sensex and Nifty 50 fell by 1.4% and 1% respectively on a WoW basis, and the six-week positive trend in Indian equities came to a pause as negative feelings prevailed among market participants, on the back of rising Covid-19 cases as well as a decline in US GDP at an annualized rate of 32.9% in 2Q 2020. Healthcare and IT were the best-performing sectors, while oil & gas and banks were the worst-performing ones on a weekly basis.  

·        Going forward, global factors like development on the US -China relationship front , and domestic factors like the outcome of the RBI MPCØ meeting ( we expect a pause in Repo rate cut in the August RBI MPC meeting) and the monsoon trajectory ; will continue to dictate the trend of the domestic equity market. We expect the trading range for Nifty between 10700-11,100 in the near term.

Indian Debt Market-  

·        Government bond prices fell marginally as the yield of the 10-year benchmark 5.79% 2030 paper settled at 5.84% on July 31 as against 5.82% onØ July 24 .

·        India’s fiscal deficit during the first quarter of this fiscal widened to Rs 6.62 lakh crore or 83.2% of the budget estimates, mainly on account of poorØ tax collections due to the lockdown; fiscal deficit during the corresponding period of last year was 61.4% of the budget estimates.  

·        RBI introduced new 5.77% GS 2030 last week.Ø  

·        We expect the 10 year benchmark yield to trade between 5.80-6.05% in near term.Ø

Domestic News  

·        Deposit growth in the banking system continued to grow at 10.1 percent on a year-on-year basis, even though banks have reduced their depositØ rates sharply in the absence of credit growth and liquidity induced by RBI due to Covid-19.  

·        India’s factory slump deepened in July as renewed lockdown measures to contain surging coronavirus cases weighed on demand and output,Ø raising the chances of a sharper economic contraction, a private business survey showed on Monday.  

·        Indian power plants used the most gas in at least 3-1/2 years in the June quarter, as operators along the west coast snapped up cheap liquefiedØ natural gas (LNG) imports that have become competitive against coal, government data showed.

International News  

·        US real gross domestic product plummeted at a record annual rate of 32.9% in the second quarter of 2020 following a 5% decline in the firstØ quarter  

·        U.S. manufacturing activity accelerated to its highest level in nearly 1-1/2 years in July as orders increased despite a resurgence in new COVID-Ø 19 infections  

·        Tens of millions of people in and around the Philippine capital will go back to a strict lockdown from Tuesday, threatening incomes and hopesØ for reviving a once dynamic economy as authorities take drastic measures to halt surging virus cases.

 

 

Link -  http://www.karvywealth.com/data/sites/1/skins/karvywealth/Download_media_report.aspx?FileName=C008C18F-7DA4-4A92-A64F-50DE73ECD819|5248508

Labels:

Comments

Post a Comment

Popular posts from this blog

Private wealth soars by 10% in FY19

The individual wealth in India has swelled by 10% in the last fiscal backed by strong growth in financial assets. The individual wealth in India has swelled by 10% in the last fiscal backed by strong growth in financial assets, a report said on Wednesday. However, compared to financial assets which grew by 10.96%, physical assets growth was at a slower pace of 7.59% and individual investors are making more investments in financial assets, Karvy Private Wealth, the wealth management arm of financial-services conglomerate Karvy Group said. Direct Equity, mutual funds, pension funds, alternative investments and international assets saw the most favorable return rate. “Direct Equity continues to hold the fort in terms of investment preference in India. This shows the belief of investors in the Indian equity markets notwithstanding the volatility it has been through,” Abhijit Bhave, Chief Executive Officer, Karvy Private Wealth, said in a statement.  Further, Prime Minister ...
Post a Comment
Read more

The World This Week – 31st Oct – 6th Nov 2020

Indian Equity Summary- ·         On the back of improving the country 's macro scenario and strengthening of the rupee, the domestic stock market rallied in line with returns from major global peers. With the midcap stock also having stellar rise; whopping gains over five percent for the Nifty and more than twelve percent for the Bank Nifty on a weekly basis and a broad-based rally, shows that the market feels that the uncertainty is behind us and in the foreseeable future we are likely to see some powerful rally. ·         Going forward, with the uncertainty due to US elections moving out of the way volatility will reduce substantially leading to money moving towards the riskier assets; domestic factors like ongoing Q2 corporate earnings season, supreme court moratorium decisions and FII/DII inflows and USD/INR rates ; will continue to dictate the trend of the domestic equity market. We expect the trading range f...
Post a Comment
Read more

Debt Advisory Services

Here at  Karvy Private Wealth,  we offer comprehensive solutions in the fixed income segment. We suggest debt investment options of various tenures and risk-reward profiles suitable to your portfolio. DEBT MUTUAL FUNDS ·  Gilt Funds:  Gilt Funds invest in government securities of medium to long-term maturities. There is no risk of default and liquidity is considerably higher in case of government securities. ·  Income Funds:  Income funds are total return products, which means, the return is made up of both interest income and capital appreciation or depreciation, depending upon profits or losses. The value of bond held in a long term portfolio, changes with changes in interest rates. ·  Monthly Income Plans:  Monthly Income Plans are debt oriented hybrid funds which has around 70%-85% of the portfolio in debt and rest in equity ·  Liquid Funds:  Liquid funds invest in safer short-term instruments such as Treasury Bills, Cert...
Post a Comment
Read more